Catch-Up Season Nears as Bitcoin Leaves Consolidation Behind

Bitcoin’s breakout into wave 3 signals a structural shift that historically triggers explosive altcoin outperformance during price discovery.

Total3’s lag below its all-time high while BTC rallies suggests a high-probability setup for a major altcoin catch-up phase.

As Bitcoin stabilizes above resistance, capital rotation into altcoins could spark asymmetric gains across the broader crypto market.

According to crypto analyst Prometheus analysis, Bitcoin has officially broken out of its long consolidation phase, entering a new growth cycle. This development has major implications for altcoins. Historically, such BTC movements spark a "catch-up trade" across the altcoin market. The analyst note that the recent BTC breakout aligns with the early stages of wave 3 in a larger macro structure. As BTC moves deeper into price discovery, altcoins are poised to benefit.

Total3—the market cap of altcoins excluding BTC and ETH—remains below its all-time highs. This divergence creates a key opportunity. Besides, past cycles reveal that altcoin outperformance typically follows Bitcoin's strong impulse moves. In the previous bull cycle, BTC rallied 25% above its all-time high before Total3 even broke its previous top. Hence, market participants are now anticipating a similar explosive phase.

Understanding the Bitcoin–Altcoin Relationship

Bitcoin’s chart shows three major waves. Wave 1 marked its first massive rally. Then came wave 2, a prolonged and choppy correction. This corrective phase built strong support and resistance zones. However, Bitcoin eventually broke out of this zone, confirming the start of wave 3.

Source: Prometheus

Moreover, this wave 3 breakout brings powerful momentum. It's not just another pump—it signals a structural shift. Altcoins typically respond to such a shift with aggressive upward moves. Additionally, during BTC’s sideways “bull chop,” altcoins often experience sharp rallies.

Catch-Up Season May Be Here

Market analyst Prometheus has dubbed this phenomenon “Catch-Up Season.” It’s a recurring event in crypto market cycles. Bitcoin grabs attention first, drawing in capital. Then, as BTC stabilizes in price discovery, money flows into alts.

The annotated show Total3’s strongest rallies during BTC’s sideways action. These green-shaded zones on historical charts align with current conditions. Hence, if BTC maintains its momentum, alts are likely next to move.

Moreover, the altcoin market remains undervalued relative to Bitcoin. Many altcoins still lag behind their 2021 highs. This creates asymmetric upside potential. With Bitcoin now breaking major resistance, a chain reaction may follow.

The post Catch-Up Season Nears as Bitcoin Leaves Consolidation Behind appears on Crypto Front News. Visit our website to read more interesting articles about cryptocurrency, blockchain technology, and digital assets.

The content is for reference only, not a solicitation or offer. No investment, tax, or legal advice provided. See Disclaimer for more risks disclosure.
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